Introduction

Sanctions have always been an instrument of economic negotiation over the years. International trade has been restricted and globalizations of business operations have been hindered as a result of the implementation of sanctions. Free trade is not supported by sanctions and thus, the effect of globalization on a country’s economical conditions is found to be absent. In Russia, sanctions have brought vague and irreparable consequences. Sanctions are generally implemented to curb corrupt government practices (Drezner, 2003).
Mainly the economic and political climate was affected due to the imposition of sanctions. There had been several negative effects which not only affected Russia, but also other countries like the United States and the European Union were affected. Improvements in the situations have been experienced, but the change has not been significant. Many companies in the United States who had investment plans in Russia had to suffer losses due to restrictions on business activities. This in turn, had caused severe financial crisis in Russia as major industries which depended on international investment had to be closed down due to absence of sufficient capital and other resources. For instance, many Russian companies dealing with oil have lost investors due to abandonment of cooperation from global oil companies like British Petroleum and Exxon Mobil Corporation. Companies who exported to the Russian companies faced a grave economic downturn. The United States also suffered and especially the agricultural sector was affected as Russia was one of the main importers of the United States food products. There was drain of capital from Russia and this happened in a rapid rate. Technological advancements also suffered. Russia stopped its supply of sophisticated resources that helped NASA in various advanced programs. There were also severe implications on the European ...

Related papers

Therefore, the paper will focus on how these institutions have contributed to development and how their influence has had negative impacts on developing nations. An overview of operations of international institution in Developing Countries Since the advent of globalisation, international organisations have increased their operations in developing countries. International trade has spread all over…

According to the report, titled, Hot Profits and Global Warming: How Oil Companies Hurt Consumers and the Environment, the soaring prices are not dampening demand because most families have little leeway to alter their driving habits. Federal government statistics show this summer's gasoline demand up between 1.6 and 1.9 percent from 2005.…

(Buckley & Ghauri, 2004 p.86) United Nations Human Development Report (1999) said “Poverty is everywhere. Gaps between the poorest and the richest people and countries have continued to widen. In 1960, the 20% of the world’s people in the richest countries had 30 times the income of the poorest 20% . In 1977, 74 times as much. This continues the trend of nearly two centuries. Some have…

of HIV/AIDS is used as an example for showing the level at which the firm is willing to promote ethics and to ignore the relevant effects on its profitability. The review of the firm’s practices in supporting the patients of HIV in South Africa has revealed the following facts: the firm has taken initiatives for promoting public health, or, else, public good, in the specific regions. However,…

Sanctions have always been an instrument of economic negotiation over the years. International trade has been restricted and globalizations of business operations have been hindered as a result of the implementation of sanctions. Free trade is not supported by sanctions and thus, the effect of globalization on a country’s economical conditions is found to be absent. In Russia, sanctions have…

It is therefore natural that the Ukrainian Crises has significant impact in international business as pro-Russian and pro-European forces clash inside the country. This essay makes an analysis of the implication of the Ukrainian Crisis on international business while appreciating the fact that the crisis has ceased being an internal matter to one pitting Russia on one hand and most of European…

Didn't find a paper?

Contact us via Live Chat, call us at +15186314539or send an email to support@studentshare.net